Saudi Arabia threatens to collapse naphtha prices after rising conflict in the Middle East

Minister Saudi Arabia's energy sector Abdelaziz bin Salman said that naphtha prices could fall to 50 dollars per barrel, as OPEC+ members will not meet the economic exchange rate production.

This is reported by The Wall Street Journal.

This raised concerns among other participating countries, which perceived the statement as a potential threat to the beginning of a price war from the side of Saudi Arabia ii, to protect your part of the market.

Zokrem is talking about those that countries, such as Iraq and Kazakhstan, are destroying quotas for oil production, which will weaken the effectiveness of OPEC+ agreements to free up production for market stabilization. Abdelaziz bin Salman said that adding additional barrels of naphtha to the market is of no benefit to them.

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Overnight, naphtha prices have increased rapidly after the intensified conflict in the Close Skhod, which has been accelerated by Iran’s attacks in Israel, which raised concerns about possible interruptions in the supply of oil from the Persian Inlet region.

It seems that on the 19th of June Great Britain added 11 new tankers to its sanction list, what is involved in the transportation of naphtha and naphtha products from Russia to third countries.

As reported, the United States announced the introduction of a regulation against companies and vessels that illegally attempted to transport gas from sanctioned Russia of the Arctic LNG 2 project.

Prepared by: Nina Petrovich